On Monday, November 3, Chestertown Town Manager Bill Ingersoll updated the town council on the solar power project that will save the town thousands of dollar each year. “I can’t predict to the dollar of course, but I can look at the past where we saved $50,000 a year at 7.5 cents/kilowatt hour, then $130,000 with another provider where we were paying 6.8 cents/kilowatt hour. Now we will be paying 4.5 cents/per kilowatt hour with no delivery fees from a provider” Ingersoll believes it that it would be safe to estimate the savings near $200,000.
The solar system would be installed by SolarCity at no cost the town.
Solar power from a town system does not go directly into the town grid. It is ‘sold’ to the main power grid and becomes a credit used to reduce the cost of the town’s power.
Note: Photo is from previous solar installation.
Richard Norton says
I’m sure answers to my queries have been published elsewhere. Great effort by Bill.
1. How was this endeavor funded? What has been the total cost to the town to date. long term town bonds at what yearly interest and repayment costs.
2 If it is in bonds or other debt then what is the dept load expressed in the same manner as the income expressed.
3. Electric Power Research Institute published a White Paper in PdF format that is cost and maintenance data from utilities.
https://www.smartgridnews.com/artman/uploads/1/1021496AddressingPVOaMChallenges7-2010_1_.pdf
4. After debt load and maintenance at town expense is subtracted from ‘income’ is there still a positive cash flow projected.
5. Present $$ of saving to be reported as an an identified line item in the budget with full documentation of cost data available to the public in next years budget presentation to the Mayor and council.
I totally support what the town has done.
Less enthusiastic about any real cost savings for the total project per the Electric Power Research Institute white paper data..
Green is good, but low cost oil is putting pressure on utilities to close solar and wind farms across the country. Is this energy payment a guaranteed yearly contractual amount projected over the years of debt.. Will we save more money if oil rise again in price.
Joe Diamond says
Richard,
I am just beginning to look at this from the homeowner point of view. The same questions you brought up apply. The consideration I am studying is the announced intention of local power companies to avoid having to build another power plant to meet increasing local needs. To that end the decline in other fuel costs MAY not apply here.
Also, I note a not-in-my backyard faction. They do not or cannot participate in solar or wind power but have to look at the equipment.
I will watch as your questions are answered.
Good one!
Joe